Eaton Earnings Preview: Analysts Expect Higher EPS, Revenue

Eaton ETN announces its next round of earnings this Monday, October 24, 2011. Get prepared with Benzinga's ultimate preview for Eaton's third quarter earnings.

Earnings and Revenue:

Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of $1.09/share and revenues of $4.2 billion. Eaton's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 80 cents/share on revenues of $3.57 billion. We'll know on Monday whether Eaton has managed the estimated 36.3% increase in EPS and 17.6% rise in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q2	Q1	Q4	Q3
EPS Estimate	$0.95	$0.80	$0.83	$0.69
EPS Actual	$0.97	$0.84	$0.85	$0.80

Stock Performance:

Shares of Eaton were trading at $42.32 as of October 18, 2011. Shares are down 14.9% year to date. For a full 12 months, the return has declined by 0.8%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for Eaton is a Moderate Buy. The strength of this rating has declined slightly over the past three months.

Competitors:

Want to check out the performance of Eaton closest competitors? Take a look at some of the company's peers in the industrials sector.

• Crane CR: Moderate Buy with a $0.85 recent quarter EPS
• Dover DOV: Hold with a $1.19 recent quarter EPS
• General Electric Company GE: Moderate Buy with a $0.33 recent quarter EPS
• Magnetek MAG: $0.05 recent quarter EPS

Eaton is in the machine industrial industry, which has experienced price/earnings growth of 1%.

Finally, a description of the company's main areas of operation: Eaton is a power management company offering services in the sectors of electricity, hydraulics, aerospace, truck, and automotive.

Take Action:

That's your advanced look at Eaton's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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